The illegal activities of some microfinance companies that have led to the loss of substantial amounts of money by investors have provoked government to introduce a piece of legislation to sanitize the microfinance sector.
The Bill-Deposit Protection Bill- will be aimed at insulating depositors from losses from an insured event and for the support of the development of a safe, sound, efficient and stable market-based financial system in Ghana.
Finance Minister, Seth Terkper, at a plenary sitting of Parliament, Tuesday, said the Bill was at the final stages of consideration at the Finance Committee of the August House.
He was addressing issues relating to the circumstances that led to the collapse of some microfinance companies in the Brong Ahafo and the three northern regions.
The invitation of the Finance Minister to the House was spurred by concerns raised by Members over the activities of DKM Diamond Microfinance Company Limited, God is Love Fun Club, Jaster Motors and Investment Limited,
Little Drops Helping Association, Perfect Edge Group and Care for Humanity International Fun Club, that have led to the loss of huge sums of money by depositors.
Terkper commenting further said he was very hopeful that the measures being embarked upon by the government would yield the necessary results in protecting investors in the future.
